R-348
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RESOLUTION NO. ~
(Redevelopment Agency)
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SANTA MONICA, CALIFORNIA, DECLARING ITS INTENTION TO
SELL A PROMISSORY NOTE OF SAID AGENCY IN THE AMOUNT
OF 53,700,000 FOR THE CITY OF SANTA MONICA DOWNTOWN
REDEVELOPMENT PROJECT; FIXING TIME AND PLACE FOR
TAKING BIDS; AND DIRECTING PUBLICATION OF A REVISED
NOTICE INVITING BIDS
WHEREAS, this Agency deems It proper a~d the necessity therefor
appears that bids be invited for the purchase of its 53,700,000 Promissory
Note (the "Note"), a~d that if bids are satisfactory, the Note be sold In
the manner and at the time and place hereinafter set forth.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE C1TY OF SANTA MONICA
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION I. Resolution No. 346, adopted March 28, 1978, is hereby
rescinded in its entirety.
SECTION 2. Sealed bids for the purchase of the Note shall be
received by the Agency at the time and place hereinafter set forth In the
Notice Inviting Bids.
SECTION 3. The Secretary is hereby authorized and directed to
publish said Notice Inviting Bids by one Insertion In the Evening Outloo~,
a newspaper of general circulation in the City of Santa I'anica, California,
said publication to be at least five (5) days prior to the date of opening
bids stated in said Notice.
SECTION 4. The Secretary is further authorized and directed to
cause to be furnished to prospective bidders copies of said Notice Inviting
Bids relating to the Note; but the failure, in whole or in part, to comply
with this section shall not in any manner affect the val idity of the sale of
the Note.
SECTION 5
Said Notice shall be substantially as follows
(SEE ATTACHED)
APPROVED and ADOPTED this 11th day of April 1978.
ATTEST
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Donna O'Brien SWink, Chair~an
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J6nn Jalili, Secretary
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Resolution No
Redevelop~ent Agency
I hereby certify that the foregoing resolution was duly adopted by
the Redevelopment Agency of the City of Santa Monica, Cal ifornia, at a special
meeting thereof held on the 11th day of AprIl, 1978.
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AYES: BambrIck, Cohen, Reed, Scott, Trlves, van den
Steenhoven, ~ayor SWInk
NOES: ~one
ABSENT. None
Joid:. Jd!
APPROVED AS TO LEGAL
F~jm _
ichar17L~ ~Ickerbocker
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3/28/78
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NOTICE ISVITING BIDS ON A
$3,700,000 PRO:MISSORY NOTE OF THE
REDEVELOPMENT AGENCY OF
THE CITY OF SANTA M01\'ICA
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of one $3,700,000 par
value promissory note (the "Kote") of the Redevelopment Agency of the City of Santa MODIca will
be receIved by s31d Agency at the place and up to the tIme below speclfied
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TIME:
J I 00 o'clock A M Tuesday, Apnl 18, 1978
PLACE
Coune i I Chambers
Oty Hall
1685 Mam Street
Santa MODIca, Cahforma 90401
MAILED BIDS
% Mr John Jahh,
DIrector of EnVIronmental ServIces
at the above address
OPENING OF BIDS The bids wIll be opened at the tIme and place shown above and will be
presented to the Agency at Its meetmg to be held on the same date at the same place
ISSUE' $3,700,000 PromIssory Note, to be dated May 1, 1978
"MATURITY The Note shall mature on May 1, 2004
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PURPOSE OF ISSUE- The Note IS to be Issued by the Agency under and pursuant to the Com-
munity Redevelopment Law of the State of Cahforma (Part 1 of DlVlslOn 24 of the Health and Safety
Code) to aid in the acqUisItIon and clearance of propertIes to be used for public parkmg purposes and
-leased to the City of Santa MOllica pursuant to a lease (the <<Lease"), for the relocation of persons and
busmesses from the acqwred properties, and the repayment of mdebtedness mcurred by the Agency m
lmplementmg these actIVIties
INTEREST RATE, PAYMENT The Note shall bear mterest at a rate to be fixed upon the sale
thereof, but not to exceed 6% per annum, payable semiannually from HS date. May 1, 1978
PAYMENT SaId Note and the mterest thereon wJlI be payable m lawful money of the Umted
States of Amenca at the office of the Treasurer of the Agency Pnnclpal WIll be payable m accordance
with the amortIZatIon schedule set forth in the ResolutIOn of Issuance adopted by the Agency on March
28, 1978 (the "ResolutIon-') WhICh ResolutIOn IS attached to the Lease as ExhibIt B
REDE\1PTION The Note shall be subject to call or redemptIon pnor to matunty at any time,
upon payment of the pnnclpal amount thereof plus accrued interest to the date of redemption,
all as proVided m the ResolutIOn
SECURITY The Note IS a speCIal obhgatiOn of the Agency payable from any funds of the Agency
lawfully avaIlable therefor, mdudmg an assignment of the Agency's mterest m the Lease
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3/28/78
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TERMS OF SALE
Award The Note shall be sold for cash only Each bId shall state the purchase price, which shall
not be less than par, and the Interest rate not to exceed that specified herein, at which the bidder
offers to buy the Note Each bidder shall state In Ius bid the total net lDterest cost lD dollars and the
average net interest rate determmed thereby, whIch shall be considered mforrnatn/e only and not a part
of the bid
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Hzghest B,dder The Note wIll be awarded to the highest responsible bidder or bidders consldermg
the mterest rate specified and the premIUm offered, If any The highest bid Will be determined by
deductmg the amount of the premIUm bid (If any) from the total amount of mterest which the Agency
would be required to pay from the date of the Note to the matunty date thereof at the rate specified 10
the bId, and the award \>"'111 be made on the baSIS of the lowest net mterest cost to the Agency
RIght of Re]ectwn The Agency reserves the nght, III Its discretion, to reject any and all bids and
to the extent not prolubIted by law to waive any uregulanty or mformalIty m any bid
Prompt Award The Agency wdl take action awardmg the Note or reJectmg all bids not later than
26 hours after the tIme herem prescnbed for the receIpt of proposals, provided that the award may be
made after the eXpIratIOn of the specIfied hme If the bIdder shall not have gIven to the Agency notIce
10 '\-Tlting of the WIthdrawal of such proposal
Place of Delivery and Funds for Payment DelIvery of said Note will be made to the successful
bidder at the offices of the Treasurer of the Agency in Santa I\-1omca, CahfoffiJa, or at such other place
as may be agreed upon by the successful bidder and the Treasurer of the Agency
Payment for the Note shall be made 10 Federal Reserve Bank funds or other 1mmedlately available
funds
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Prompt Debvery, Cancellation for Late Delivery It IS expected that SaId Note WllI be dehvered
to the successful bidder on or about May 1, 1978 The successful bIdder shall have the nght, at Its
optIOn, to cancel the contract of purchase if the Agency shall fad to execute the Note. satisfy the terms
of sale as contamed herein, and tender It for delivery Within 60 days from the date herem fixed for the
receIpt of bIds, and m such event the successful bIdder shall be entitled to the return of the check
accompanymg hiS bId
Farm of Bzd Each bid, together WIth the bid check, must be in a sealed envelope, addressed to
the Agency, With the envelope and bid clearly marked "Proposal for Downtown Pmject Note"
Bid Check A certIfied or cashIer's check on a responSIble bank Or trust company III the amount
of $50,000 payable to the order of the Agency, must accompany each proposal as a guaranty that the
bIdder, If successful, w~ll accept and pay for said Note m accordance WIth the terms of hIS bId The check
accompanymg any accepted proposal shall be apphed on the purchase pnce or, If such proposal IS
accepted but not performed. unless such faIlure of performance shall be caused by any act or omISSIOn
of the Agency, shall then he cashed and the proceeds retamed by the Agency The check accompanymg
each unaccepted proposal WIll be returned promptly
Change In Tax Exempt Status At any tlme before the Note 15 tendered for deltvery, the successful
bidder may dIsaffirm and WIthdraw the proposal If the interest received by pnvate holders from notes
of the same type and character shall be declared to be taxable or be reqUlred to be taken mto account m
computmg any federal Income taxes, by the terms of any federal Income tax law enacted subsequent
to the date of thiS notice
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Clo~zng Papers, Legal Opl11lOn Each proposal wIll be understood to be condItioned upon the
Agency furmshmg to tbe purchaser, \.,.lthout charge. concurrently wIth payment for and delivery of the
Note, the followmg closing papers, each dated the date of delivery:
(a) Legal opmions-
(i) The opimon of O'Melveny & Myers, Los Angeles, Cahforma, Bond Counsel, approv-
mg the vahdIty of the Note, the Lease and the assignment thereof and stating that interest on
the Note IS exempt from lUcome taxes of the Umted States of America under present federal
mcome tax laws, and that such mterest IS also exempt from personal mcome taxes of the
State of CalIfornia under present state mcome tax laws
(n) The opmlon of tbe City Attorney of the CIty of Santa Monica approvmg the valIdity
of the Lease
(b) A certIficate of the Agency certIfying that on the basis of the facts, estImates and CIrcum-
stances III eXIstence on the date of issue, it IS not expected tbat the proceeds of the Note wIll be
used III a manner that would cause the Note to be an arbItrage bond
(c) A certlficate of the Agency SIgned by officers and representatIves of the Agency certlfymg
to the followmg (1) that said officers and representatIves have Signed the Note, whether by
facsimIle or manual sJgnature. and that they were respectIvely duly authonzed to execute the same,
and (2) that there IS no htigatlOn threatened or pendmg affectmg the validity of the Note
(d) A pobcy of TItle Insurance (or a bmder representIng eVIdence thereof) msunng the
validIty of the Lease and the pnonty of the assignment
(e) A certlficate of both the Agency and the CIty that the Lease and the assIgnment of the
Lessor's interest therem IS in full force and effect, has not been modIfied or amended in any way,
constitutes the entire agreement between the partIes thereto wIth respect to the subject matter
thereof and there are no facts then III eXIstence whIch, wIth the gIVIng of notIce or the passage
of tIme, would form the basis of any default under the Lease
INFOR1vlATION AVAILABLE Requests for InformatIon concerning the Agency should be
addressed to Mr John Jahh, 1685 Mam Street, Santa MOllIca, Cahfomia 90401.
GIVEN by order of the Santa MOllica Redevelopment Agency of the CIty of Santa Monica, adopted
April 11,1978
Secretary of the Redevelopment Agency
of the City of Santa Monica, California
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